Answer :
Let's solve the problem step-by-step.
1. Identify the relevant information:
- Cost of the furniture set in both states: \[tex]$1500 - Tax rates: - Alabama: - State tax: 4.225% - County tax: 1.375% - City tax: 3.0% - Florida: - State tax: 6.5% - County tax: 1.0% - City tax: 1.625% 2. Calculate the total tax rates in both states: - Alabama: \[ \text{Total tax rate in Alabama} = 4.225\% + 1.375\% + 3.0\% = 8.6\% \] - Florida: \[ \text{Total tax rate in Florida} = 6.5\% + 1.0\% + 1.625\% = 9.125\% \] 3. Convert the percentage rates to decimals for calculation: - Alabama: \[ 8.6\% = 0.086 \] - Florida: \[ 9.125\% = 0.09125 \] 4. Calculate the sales tax amount for the furniture set in both states: - Alabama: \[ \text{Sales tax amount in Alabama} = 1500 \times 0.086 = 129 \text{ dollars} \] - Florida: \[ \text{Sales tax amount in Florida} = 1500 \times 0.09125 = 136.875 \text{ dollars} \] 5. Determine the difference in sales tax amounts between the two states: \[ \text{Difference} = |129 - 136.875| = 7.875 \text{ dollars} \] 6. Analyze the statements given in the question: - A. The furniture set is cheaper in Alabama, because the amount of sales tax will be lower by about \$[/tex]8.
- B. The furniture set is cheaper in Florida, because the amount of sales tax will be lower by about \[tex]$10. - C. The furniture set is cheaper in Alabama, because the amount of sales tax will be lower by \$[/tex]10.
- D. The furniture set costs the same in either state, because the amount of sales tax will be the same for the two locations.
Considering the calculations:
- The difference in sales tax is approximately \[tex]$7.875. - Since the difference is below \$[/tex]8, we can conclude that the sales taxes in both states are very close.
The correct statement is:
D. The furniture set costs the same in either state, because the amount of sales tax will be the same for the two locations.
1. Identify the relevant information:
- Cost of the furniture set in both states: \[tex]$1500 - Tax rates: - Alabama: - State tax: 4.225% - County tax: 1.375% - City tax: 3.0% - Florida: - State tax: 6.5% - County tax: 1.0% - City tax: 1.625% 2. Calculate the total tax rates in both states: - Alabama: \[ \text{Total tax rate in Alabama} = 4.225\% + 1.375\% + 3.0\% = 8.6\% \] - Florida: \[ \text{Total tax rate in Florida} = 6.5\% + 1.0\% + 1.625\% = 9.125\% \] 3. Convert the percentage rates to decimals for calculation: - Alabama: \[ 8.6\% = 0.086 \] - Florida: \[ 9.125\% = 0.09125 \] 4. Calculate the sales tax amount for the furniture set in both states: - Alabama: \[ \text{Sales tax amount in Alabama} = 1500 \times 0.086 = 129 \text{ dollars} \] - Florida: \[ \text{Sales tax amount in Florida} = 1500 \times 0.09125 = 136.875 \text{ dollars} \] 5. Determine the difference in sales tax amounts between the two states: \[ \text{Difference} = |129 - 136.875| = 7.875 \text{ dollars} \] 6. Analyze the statements given in the question: - A. The furniture set is cheaper in Alabama, because the amount of sales tax will be lower by about \$[/tex]8.
- B. The furniture set is cheaper in Florida, because the amount of sales tax will be lower by about \[tex]$10. - C. The furniture set is cheaper in Alabama, because the amount of sales tax will be lower by \$[/tex]10.
- D. The furniture set costs the same in either state, because the amount of sales tax will be the same for the two locations.
Considering the calculations:
- The difference in sales tax is approximately \[tex]$7.875. - Since the difference is below \$[/tex]8, we can conclude that the sales taxes in both states are very close.
The correct statement is:
D. The furniture set costs the same in either state, because the amount of sales tax will be the same for the two locations.
